Investors interested in stocks from the Financial Transaction Services sector have probably already heard of Paypal (PYPL) and MasterCard (MA) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes co ...

Core Insights - DocuSign stock experienced a significant surge of 15.4% following a modest earnings beat in its fiscal fourth quarter 2025 report, with earnings of $0.86 per share and sales of $776.3 million, surpassing analyst expectations [1][2] Financial Performance - Sales increased by 9% year over year, while billings rose by 11%, indicating potential for faster sales growth in the future [2] - The reported profit of $0.86 per share was a non-GAAP figure, with GAAP earnings at $0.39 per share, representing a threefold increase from the previous year's GAAP profit of $0.13 [2] - Free cash flow for the quarter improved to $279.6 million year over year [2] Revenue and Valuation - For the full year 2024, DocuSign reported nearly $3 billion in revenue, an 8% increase year over year, with per-share earnings of $5.08, leading to a current stock price approximately 17 times trailing earnings [3] - The company forecasts revenue of $3.1 billion for fiscal year 2026, suggesting a revenue growth of about 5% [3] - Management did not provide guidance for GAAP profit, but if earnings grow in line with sales, the stock appears overvalued with a PEG ratio exceeding 3 [3] Profitability Outlook - Management indicated that non-GAAP gross profit margins are expected to decline in fiscal 2026 to about 81%, down from over 82% in the previous year, suggesting that profits may grow slower than sales in the upcoming year [4] - This decline in profit margins implies that DocuSign stock may be more expensive than it appears [4]

The most recent trading session ended with Dow Inc. (DOW) standing at $36.23, reflecting a +1.34% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.91%. Elsewhere, the Dow saw a downswing of 1.5%, while the tech-heavy Nasdaq depreciated by 1.96%.Coming into today, shares of the materials science had lost 6.56% in the past month. In that same time, the Basic Materials sector lost 3.32%, while the S&P 500 lost 7.38%.Market participants will be closely following t ...

Company Performance - Archer Daniels Midland (ADM) stock closed at $47.25, with a +0.36% movement, outperforming the S&P 500's 0.91% loss on the same day [1] - The stock has increased by 4.11% over the past month, surpassing the Consumer Staples sector's gain of 3.05% and the S&P 500's loss of 7.38% [1] Earnings Projections - The upcoming EPS for ADM is projected at $0.71, indicating a 51.37% decline compared to the same quarter last year [2] - Revenue is estimated to be $20.74 billion, reflecting a 5.06% decrease from the same quarter of the previous year [2] - Full-year earnings are expected to be $4.24 per share, representing a year-over-year decline of 10.55%, while revenue is projected at $88.43 billion, showing a 3.39% increase [3] Analyst Estimates - Recent changes in analyst estimates for ADM suggest a positive outlook on the company's business operations [4] - The Zacks Rank for ADM is currently 4 (Sell), following a 4.55% decline in the Zacks Consensus EPS estimate over the past month [6] Valuation Metrics - ADM has a Forward P/E ratio of 11.1, which is lower than the industry's average Forward P/E of 11.61 [7] - The company has a PEG ratio of 1.53, compared to the Agriculture - Operations industry's average PEG ratio of 1.55 [7] Industry Context - The Agriculture - Operations industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 218, placing it in the bottom 14% of over 250 industries [8]

Group 1: Stock Performance - ON Semiconductor Corp. ended the latest trading session at $42.15, reflecting a -1.63% adjustment from the previous day's close, which lagged behind the S&P 500's daily loss of 0.91% [1] - The stock has experienced a decline of 14.4% over the past month, underperforming the Computer and Technology sector's loss of 10.57% and the S&P 500's loss of 7.38% [1] Group 2: Earnings Expectations - Analysts expect ON Semiconductor Corp. to report earnings of $0.51 per share in the upcoming release, indicating a year-over-year decline of 52.78% [2] - The consensus estimate anticipates revenue of $1.41 billion, representing a 24.54% decrease from the same quarter last year [2] Group 3: Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $2.49 per share and revenue of $6.07 billion, reflecting changes of -37.44% and -14.3%, respectively, from the prior year [3] Group 4: Analyst Estimates and Rankings - Recent changes to analyst estimates for ON Semiconductor Corp. indicate short-term business trends, with positive revisions suggesting optimism about the company's outlook [4] - The Zacks Rank system currently assigns ON Semiconductor Corp. a rank of 5 (Strong Sell), with the consensus EPS estimate having decreased by 18.12% over the last 30 days [6] Group 5: Valuation Metrics - ON Semiconductor Corp. has a Forward P/E ratio of 17.23, which is lower than the industry average of 30.9, indicating that the company is trading at a discount compared to its peers [7] - The company holds a PEG ratio of 13.46, significantly higher than the industry average PEG ratio of 1.95, suggesting a disparity in expected earnings growth [8] Group 6: Industry Context - The Semiconductor - Analog and Mixed industry, part of the Computer and Technology sector, currently holds a Zacks Industry Rank of 205, placing it in the bottom 19% of over 250 industries [8]

Group 1 - MasterCard's stock closed at $519.83, down 0.92%, underperforming the S&P 500's loss of 0.91% and the Dow's decline of 1.5% [1] - Over the past month, MasterCard shares have decreased by 7.08%, while the Business Services sector and the S&P 500 have lost 9.97% and 7.38%, respectively [1] Group 2 - MasterCard is expected to report an EPS of $3.57, reflecting a 7.85% increase year-over-year, with anticipated revenue of $7.12 billion, indicating a 12.18% rise from the same quarter last year [2] - Full-year estimates predict earnings of $15.85 per share and revenue of $31.56 billion, representing year-over-year growth of 8.56% and 12.06%, respectively [3] Group 3 - Recent analyst estimate revisions for MasterCard suggest positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks MasterCard at 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 0.65% in the past month [6] Group 4 - MasterCard's Forward P/E ratio stands at 33.1, significantly higher than the industry's average of 14.8, while its PEG ratio is 2.26 compared to the industry average of 1.37 [7] - The Financial Transaction Services industry, which includes MasterCard, has a Zacks Industry Rank of 129, placing it in the bottom 49% of over 250 industries [8]

Company Performance - Bristol Myers Squibb (BMY) closed at $60.28, reflecting a +0.79% change from the previous trading day's close, outperforming the S&P 500's daily loss of 0.91% [1] - The stock has gained 6.52% over the past month, while the Medical sector lost 1.88% and the S&P 500 lost 7.38% during the same period [1] Earnings Expectations - Analysts expect Bristol Myers Squibb to report earnings of $1.55 per share, indicating a year-over-year growth of 135.23% [2] - The Zacks Consensus Estimate for revenue is projected at $10.69 billion, down 9.94% from the previous year [2] - For the full year, earnings are projected at $6.75 per share, showing a growth of +486.96%, while revenue is expected to be $45.59 billion, reflecting a decrease of -5.6% from the prior year [3] Analyst Estimates and Rankings - Recent modifications to analyst estimates indicate changing business trends, with positive changes suggesting a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks Bristol Myers Squibb at 3 (Hold) [6] Valuation Metrics - Bristol Myers Squibb has a Forward P/E ratio of 8.86, which is a discount compared to the industry average Forward P/E of 18.77 [7] - The company has a PEG ratio of 2.22, compared to the industry average PEG ratio of 1.51 [8] Industry Context - The Medical - Biomedical and Genetics industry, which includes Bristol Myers Squibb, has a Zacks Industry Rank of 64, placing it in the top 26% of over 250 industries [9]

Core Viewpoint - The Bank of East Asia Ltd. (BKEAY) is currently viewed as a more attractive investment option compared to National Australia Bank Ltd. (NABZY) for value investors seeking undervalued stocks [1][3][7] Valuation Metrics - BKEAY has a forward P/E ratio of 6.25, significantly lower than NABZY's forward P/E of 14.37 [5] - The PEG ratio for BKEAY is 0.80, indicating a favorable valuation in relation to its expected earnings growth, while NABZY's PEG ratio is much higher at 7.64 [5] - BKEAY's P/B ratio stands at 0.25, which is substantially lower than NABZY's P/B ratio of 1.57, suggesting that BKEAY is undervalued relative to its book value [6] Zacks Rank and Style Scores - BKEAY holds a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while NABZY has a Zacks Rank of 4 (Sell) [3] - BKEAY has earned a Value grade of A, contrasting with NABZY's Value grade of F, highlighting BKEAY's stronger position in terms of value metrics [6]

Core Insights - Investors in the Medical - Biomedical and Genetics sector should consider Gilead Sciences (GILD) and Vertex Pharmaceuticals (VRTX) for potential value opportunities [1] Valuation Metrics - GILD has a forward P/E ratio of 14.49, while VRTX has a forward P/E of 28.07, indicating GILD may be undervalued compared to VRTX [5] - GILD's PEG ratio is 0.74, suggesting a favorable valuation when considering expected earnings growth, whereas VRTX's PEG ratio is 1.20 [5] - GILD's P/B ratio is 7.38, compared to VRTX's P/B of 7.78, further supporting GILD's stronger valuation metrics [6] Analyst Outlook - GILD currently holds a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to VRTX, which has a Zacks Rank of 3 (Hold) [3][6] - The solid earnings outlook for GILD positions it as the superior value option in comparison to VRTX [6]

Core Viewpoint - Target's stock has experienced a significant decline of 55% over the past few years, contrasting sharply with the S&P 500's 20% increase during the same period, raising questions about its investment potential [1][2]. Group 1: Company Performance - Despite the stock's poor performance, Target is a blue-chip company with a strong brand and a history of success, including 58 consecutive annual dividend increases [2]. - Target's business fundamentals remain solid, but its stock price has suffered due to its cyclical nature compared to competitors like Walmart, which has a higher proportion of staple goods sales [2][4]. - Target's merchandise sales include only about 40% from groceries and household staples, making it more vulnerable during economic downturns when discretionary spending decreases [4][6]. Group 2: Financial Health - Target maintains a strong financial foundation, with a current dividend yield of 3.9%, a payout ratio of only 45% of cash flow, and a manageable leverage ratio of 1.8 times EBITDA [8]. - The company has $4.7 billion in cash and holds an "A" credit rating, indicating stability despite current challenges [8]. - Analysts project earnings growth of just over 6% annually over the next three to five years, resulting in a reasonable PEG ratio of 2.1, suggesting the stock is now more appropriately valued [11]. Group 3: Investment Considerations - While the stock is not considered a generational bargain, it could provide solid total returns of 10% to 11% annually through dividends and earnings growth, making it a potential buying opportunity [12]. - The stock may continue to struggle until discretionary spending recovers, but the current financial stability allows for a degree of investor confidence [9][12].